US Senate Passes GENIUS Stablecoin Act with Bipartisan Support

• GENIUS Act establishes federal rules for stablecoin issuers
• Stablecoins must be backed by dollars or liquid assets
• Trump wants stablecoin regulations approved by August

The United States Senate approved, by a vote of 68 to 30, the GENIUS Act (Guidance and National Innovation for US Stablecoins), a regulatory framework that establishes federal guidelines for the stablecoin market. The proposal now goes to the House of Representatives for a vote, where it will be debated in parallel with the STABLE Act, which has different approaches on points such as state oversight and the role of foreign issuers.

Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act.

A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back…

— Treasury Secretary Scott Bessent (@SecScottBessent) June 17, 2025

The legislation proposes that stablecoin issuers be fully backed by U.S. dollars or highly liquid assets. Additionally, companies with a market capitalization of more than $50 billion must undergo mandatory annual audits. The rule also stipulates compliance requirements for issuers based outside the United States, such as Tether, raising the regulatory bar for the entire crypto sector.

Another important guideline of the GENIUS Act is the prohibition of the issuance of stablecoins by non-financial public companies, such as Meta or Amazon, unless they comply with specific standards related to systemic risk and data protection. In cases of insolvency, stablecoin holders will have top priority in the bankruptcy process, ahead of other creditors.

The expectation is that the Chamber will analyze the GENIUS Law in the coming weeks. If there are significant differences with the STABLE Law proposal, a conciliation will be necessary before sending the final text for presidential sanction.

Donald Trump, who has already expressed support for regulating stablecoins, has been pushing Congress to finalize and enact legislation by August. Treasury Secretary Scott Bessent highlighted that with the approval of the GENIUS Act, confidence is growing that the global stablecoin market could reach $3,7 trillion by 2028, cementing the importance of stable digital assets within the financial ecosystem.